Understanding The Tax Consequences Of A Divorce
Any couple going through divorce will face some tax consequences. Couples with high assets may incur a higher tax debt because of the division of their wealth. When going through a divorce, it is incredibly important to work with a lawyer who understands how taxes will affect you and how to minimize their impact.
At The Koblin Family Law Center, we know how taxes may hit your bottom line during an already stressful time, mentally and financially. We help prepare you for these issues and work with financial professionals to avoid any tax repercussions. We have extensive experience with high-asset divorces and how taxes will affect each party. Our attorneys watch out for your best interests and do everything possible to protect you from a heavy tax burden.
Tax Considerations In A Divorce
Married couples do have some protections from excessive tax burdens during divorce through California and federal law. However, some issues are hard to avoid, including:
- Retirement benefits or pension funds
- Executive benefits such as executive bonus compensation, deferred compensation plans and pension funds
- Investments such as stock options, trust accounts and real property
- Business interests such as property ownership, intellectual property and debts associated with business ownership
- Alimony/spousal support
- Sale of marital property
We are very conscious of how the division of taxes will affect you during and after your divorce. Whenever possible, we recommend negotiating with your spouse and his or her attorney to divide your property and assets so you pay the least amount of taxes.
While you and your spouse may dispute the value of a piece of property, we want to assess how keeping or selling it will affect your bottom line. We work hard to protect you from losing your hard-won property and assets to Uncle Sam.